Rogers Communications Inc (RCI)

Price$30.55Cached quoteAs of 2026-10-07 02:18 UTC

AI: Undervalued

Price checkThe shares look undervalued if Rogers keeps most of the cash gains it expects.

Using roughly C$27.4 billion of equity value, Rogers trades near 10 times 2025 adjusted earnings of C$2.72 billion and about 6.4–6.7 times 2026 guided free cash flow of C$4.1–C$4.3 billion. Free cash flow means cash available after operating needs, investment spending, interest and taxes under Rogers’ definition. A stricter operating-cash-flow-minus-capital-spending measure was about C$2.2 billion in 2025, implying roughly 12.5 times cash. The discount still looks meaningful, though not risk-free because acquisition debt could absorb much of that cash. ca.finance.yahoo.com+2SEC+2

Big pictureRogers is growing slowly, but cash generation has improved faster than its core telecom business.

Revenue rose from C$13.9 billion in 2020 to C$21.7 billion in 2025, helped materially by acquisitions, while operating cash flow climbed from C$4.3 billion to C$6.1 billion. In 2025, adjusted earnings were essentially flat at C$2.72 billion despite reported net income jumping to C$6.89 billion because a large sports-related accounting gain inflated headline profit. First-half 2026 adjusted earnings rose only 2%, but free cash flow rose 16%. Wireless and cable are recurring businesses; sports and media add more seasonal results and event-driven swings. SEC+1

Business strengthStable network cash flows support the debt load, but the balance sheet still limits flexibility.

Rogers ended June with C$38.0 billion of adjusted net debt, meaning debt minus cash after its stated debt adjustments, equal to 3.8 times trailing adjusted operating profit before interest, taxes, depreciation and amortization. Liquidity was C$6.1 billion, 94.6% of debt had fixed rates, and average maturity was 8.3 years, which reduces near-term refinancing risk. Capital allocation is restrained: two quarterly dividends cost C$540 million, and total common shares were unchanged at 540.2 million through June. The planned C$4.35 billion sports purchase will temporarily push leverage higher. SEC+2SEC+2

What could change the storyA successful sports sale could unlock value; weaker telecom pricing or renewed spending could erase it.

The strongest upside is sports monetization: paying C$4.35 billion for the final 25% of Maple Leaf Sports implies about C$17.4 billion for that asset alone, and Rogers plans to sell a minority stake in its combined sports portfolio. The main downside is the core network business: second-quarter wireless service revenue was flat and monthly revenue per phone fell to C$54.25. The 2026 cash-flow boost also relies on lower investment spending. The thesis weakens if normalized annual free cash flow settles below roughly C$3 billion or leverage stays above four times after sports transactions. about.rogers.com+2SEC+2

AI: News

Q2 subscriber missWireless customer growth missed expectations, but stronger media revenue and cash flow kept the outlook intact.

On July 22, Rogers reported 22,000 new postpaid wireless phone customers, below the 26,726 analysts expected, while monthly revenue per phone fell from C$55.45 to C$54.25. Total revenue still rose 8% and quarterly free cash flow increased 6% to C$982 million, helped by media and lower investment spending. Reuters reported both Canadian and U.S.-listed shares fell about 2%, attributing the reaction mainly to the subscriber miss. The event matters because slower customer growth can weaken future telecom pricing power. Reuters+1

Full sports ownership dealRogers agreed to buy the last Maple Leaf Sports stake, adding upside but also more debt.

On July 6, Rogers agreed to pay C$4.35 billion for the remaining 25% of Maple Leaf Sports & Entertainment, implying roughly C$17.4 billion for the whole business. The purchase is expected to close in the fourth quarter, subject to league approvals, and Rogers plans to fund it with existing and new short-term credit facilities before pursuing a minority sale of its broader sports portfolio. The Wall Street Journal reported the shares rose 2.2%; that reaction is consistent with investors seeing potential hidden sports value, though price timing alone cannot prove the reason. about.rogers.com+1

Cash flow guidance raisedRogers cut planned network spending and raised expected cash flow, giving debt reduction a faster path.

On April 22, Rogers cut 2026 capital-spending guidance from C$3.3–C$3.5 billion to C$2.5–C$2.7 billion and raised free-cash-flow guidance from C$3.3–C$3.5 billion to C$4.1–C$4.3 billion, while leaving service-revenue and operating-profit growth targets unchanged. Reuters reported the U.S.-listed shares rose about 8%. The change matters because more cash can repay debt, but management also tied the spending cut to tougher competition and regulatory decisions, including project deferrals or cancellations, so part of the improvement may not be permanent. Reuters+1

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
Revenue	$21.71B	$20.60B	$19.31B	$15.40B	$14.65B	$13.92B	$15.07B	$15.10B	$14.14B	$13.70B
Gross profit	$9.82B	$9.62B	$8.58B	$6.39B	$5.89B	$5.86B	$6.21B	$5.98B	$5.28B	$5.03B
Gross margin	45.23%	46.68%	44.44%	41.52%	40.17%	42.09%	41.21%	39.63%	37.30%	36.72%
Operating expenses	$0	$0	$0	$0	$0	$0	$0	$0	—	—
Operating income	$9.82B	$9.62B	$8.58B	$6.39B	$5.89B	$5.86B	$6.21B	$5.98B	$5.50B	$5.09B
Operating margin	45.23%	46.68%	44.44%	41.52%	40.17%	42.09%	41.21%	39.63%	38.90%	37.16%
EBITDA	$14.62B	$14.23B	$12.70B	$8.97B	$8.47B	$8.47B	$8.70B	$8.19B	$7.64B	$7.37B
EBITDA margin	67.35%	69.08%	65.79%	58.26%	57.81%	60.90%	57.72%	54.28%	54.05%	53.77%
Net income	$6.91B	$1.73B	$849.0M	$1.68B	$1.56B	$1.59B	$2.04B	$2.06B	$1.84B	$835.0M
Net profit margin	31.81%	8.42%	4.40%	10.91%	10.63%	11.44%	13.55%	13.64%	13.05%	6.09%
Basic EPSper basic share	CA$12.77	CA$3.25	CA$1.62	CA$3.33	CA$3.09	CA$3.15	CA$3.99	CA$4.00	CA$3.58	CA$1.62
Diluted EPSper diluted share	CA$12.74	CA$3.20	CA$1.62	CA$3.32	CA$3.07	CA$3.13	CA$3.97	CA$3.99	CA$3.57	CA$1.62

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Owners

Reported shareholders

Reference date Jun 30, 2026

Reported holdings Number of shares

View holders

Top 20 reported holders of RCI
Holder	Shares held
ROYAL BANK OF CANADA	30.71M
BANK OF MONTREAL /CAN/	24.59M
FIL Ltd	19.22M
CIBC WORLD MARKET INC.	12.43M
NATIONAL BANK OF CANADA /FI/	10.26M
1832 Asset Management L.P.	8.25M
Beutel, Goodman & Co Ltd.	8.2M
MORGAN STANLEY	7.33M
BANK OF NOVA SCOTIA	6.57M
LETKO, BROSSEAU & ASSOCIATES INC	6.42M
Fiera Capital Corp	6.39M
ARROWSTREET CAPITAL, LIMITED PARTNERSHIP	6.24M
TD Asset Management Inc	6.22M
MACKENZIE FINANCIAL CORP	4.87M
TD Waterhouse Canada Inc.	4.71M
GEODE CAPITAL MANAGEMENT, LLC	4.5M
SCOTIA CAPITAL INC.	3.9M
GOLDMAN SACHS GROUP INC	3.31M
FIRST TRUST ADVISORS LP	3.25M
TORONTO DOMINION BANK	3.15M

Bars compare reported share counts. A matching total for this share class and reporting period is unavailable, so percentages are not shown.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)0$0.00 disclosed value

No insider transactions transactions were reported in the stored SEC coverage.

Review ownership filings at SEC.gov ↗

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Rogers Communications Inc (RCI)

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